Ukraine’s hryvnia tumbled, closing at a record low against the dollar, after Moody’s Investors Service said it may cut the country’s rating because political infighting is hampering efforts to avert a financial crisis.for the foreigners here whose accounts are in dollars (myself included), this makes things comparitively cheaper than a few months back when it was still 5:1. but, though it's almost hard to imagine i'm saying this, i wish the dollar would go back down some, cause if it keeps growing, ukraine's economy might just free fall off the precarious cliff it's teetering on.
The hyrvnia has lost more than 50 percent against the dollar in the past six months as reduced demand for exports and a lack of foreign credit causes Ukraine’s first economic contraction in a decade.
Inflation soared to 22.3 percent last month, the highest level in Europe
NOTE: the following day bloomberg updated this article, and outlined the newly dropped default rating. the new rating implies:
a 69.6 percent chance Ukraine will default in the next two years and 91.8 percent in the next five years.
3 comments:
Wow that's crazy!! I had no idea that was going on!
yeah, check out the follow-up article i added on to this post today. 92% chance of international debt default doesn't look pretty.
Yikes.
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